How Sri Lanka APIT is calculated
APIT (Advance Personal Income Tax) is the monthly deduction your employer must withhold from your salary and remit to the Inland Revenue Department (IRD). It replaced the older PAYE regime under the Inland Revenue Act No. 24 of 2017 and applies to all resident employees earning above the personal relief threshold.
The calculation itself is a two-step process: subtract the tax-free personal relief from your annual gross, then apply the progressive slabs to whatever income remains. Our calculator does both automatically and shows the slab-by-slab breakdown so you can see exactly which band each rupee falls into.
The 2025/26 progressive slabs
For Year of Assessment 2025/26 (1 April 2025 to 31 March 2026), the schedule is:
- 0% on the first LKR 1,800,000 (personal relief)
- 6% on the next LKR 1,000,000 (LKR 1,800,000 – 2,800,000)
- 18% on the next LKR 500,000 (LKR 2,800,000 – 3,300,000)
- 24% on the next LKR 500,000 (LKR 3,300,000 – 3,800,000)
- 30% on the next LKR 500,000 (LKR 3,800,000 – 4,300,000)
- 36% on any income above LKR 4,300,000
What changed from Y/A 2024/25
Under the Inland Revenue (Amendment) Act No. 02 of 2025, three things moved on 1 April 2025:
- Personal relief rose from LKR 1,200,000 to LKR 1,800,000 — an extra LKR 600,000 per year sheltered from tax
- The first taxable band widened from LKR 500,000 to LKR 1,000,000 at 6%
- The 12% band was eliminated — income jumps from 6% straight to 18%
For someone earning LKR 250,000 per month, the effective annual tax dropped from LKR 252,000 (Y/A 2024/25) to LKR 96,000 (Y/A 2025/26) — a saving of LKR 156,000. Toggle the year selector above to see your own delta.
What’s a marginal rate?
The marginal rate shown in the results is the rate applied to your last taxable rupee — not to your whole income. So a taxpayer at 24% marginal isn’t paying 24% on everything they earn; they’re paying 0% on the first LKR 1.8M, 6% on the next 1M, 18% on the next 500k, and only 24% on the slice above. The effective rate tells you the average across your whole gross.
What the calculator does not include
The calculator estimates APIT on employment income only. It intentionally excludes:
- EPF / ETF contributions — the 8% employee contribution reduces take-home pay but not the APIT slabs
- Non-cash benefits such as company vehicles, housing, and stock options, which are added to taxable income separately
- WHT credits on interest, dividends, or rent — those need reconciliation against your annual return
- Qualifying-payment reliefs beyond the amount you enter (life insurance, solar, rent as a landlord, etc.)
If any of those apply, use the calculator to get your baseline, then reach out for a filed-return number.
When to file and how APIT relates to your annual return
APIT deducted through the year is treated as an advance payment against your final income tax. If you had multiple income sources or reliefs your employer didn’t apply, filing an annual return between April and November lets you claim a refund. The filing deadline for Y/A 2025/26 is 30 November 2026. For a full walk-through, see our step-by-step guide to filing personal income tax in Sri Lanka.